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With this problem do a diagram defining which ones are variables, stocks, inflows and outflows. A firm wants to introduce its product in a new
With this problem do a diagram defining which ones are variables, stocks, inflows and outflows. A firm wants to introduce its product in a new market. For doing so, you have been hired to build a model that could help them to understand how their salesforce would develop in a time horizon of 20 years. Their hiring process in general takes 18 months, representing the time it takes for them to obtain candidates, and then to select and train them later. In average, a salesperson remains in the firm for 24 months. In average each salesperson generates 5 orders each month (sales force effectiveness), Assume that the orders are being fulfilled continually in an average time of 2 months and that the firm at the beginning had 80 orders initially before launching its product. Each order that is being fulfilled generates a revenue. The revenues are equal to the amount of orders that are being fulfilled multiplied by the revenues per order (11,500 pesos per order per month). The desired sales force is not constant, and is given by the total number of salespersons that can be paid each month. For paying the salespersons, a fraction of the revenues is dedicated each month. This fraction is equal to 20%. To define the desired sales force, the firm needs to divide the revenues dedicated to pay them, by the salary per salesperson (8,000 pesos per salesperson). Put the initial value of the sales force so it starts in equilibrium. Finally, assume that the market has a limit (given by the market size) equal to 8,000 orders. The ratio (market saturation) between the amount of orders that could be generated each month by the salespersons and the market size creates an effect on the sales force effectiveness. This effect (effect of market saturation) is equal to the market saturation and cannot be lower than 0. Finally, the new sales force effectiveness would be given by the normal sales force effectiveness multiplied by (1 - effect of market saturation). A firm wants to introduce its product in a new market. For doing so, you have been hired to build a model that could help them to understand how their salesforce would develop in a time horizon of 20 years. Their hiring process in general takes 18 months, representing the time it takes for them to obtain candidates, and then to select and train them later. In average, a salesperson remains in the firm for 24 months. In average each salesperson generates 5 orders each month (sales force effectiveness), Assume that the orders are being fulfilled continually in an average time of 2 months and that the firm at the beginning had 80 orders initially before launching its product. Each order that is being fulfilled generates a revenue. The revenues are equal to the amount of orders that are being fulfilled multiplied by the revenues per order (11,500 pesos per order per month). The desired sales force is not constant, and is given by the total number of salespersons that can be paid each month. For paying the salespersons, a fraction of the revenues is dedicated each month. This fraction is equal to 20%. To define the desired sales force, the firm needs to divide the revenues dedicated to pay them, by the salary per salesperson (8,000 pesos per salesperson). Put the initial value of the sales force so it starts in equilibrium. Finally, assume that the market has a limit (given by the market size) equal to 8,000 orders. The ratio (market saturation) between the amount of orders that could be generated each month by the salespersons and the market size creates an effect on the sales force effectiveness. This effect (effect of market saturation) is equal to the market saturation and cannot be lower than 0. Finally, the new sales force effectiveness would be given by the normal sales force effectiveness multiplied by (1 - effect of market saturation)
With this problem do a diagram defining which ones are variables, stocks, inflows and outflows.
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